STORY CONTINUES BELOW THESE SALTWIRE VIDEOSBy A. Ananthalakshmi and Mai Nguyen
The decision, however, comes as the world looks to diversify away from China, the world's largest producer of the critical rare earth minerals that are used widely in semiconductor chips, electric vehicles and military equipment. Malaysia's ban could affect sales to China, which imported about 8% of its rare earth ores from the Southeast Asian country between January and July this year, according to China customs data.Earlier this year, China itself announced restrictions on exports of some metals used widely in the semiconductor industry, in a move seen as retaliatory measure for U.S. curbs on sales of technologies to China.
"The legislation could have some negative impacts on potential investment in Malaysia from Chinese parties, which have looked to other Asian nations to source unprocessed or mixed rare earth compounds as feedstock for processing facilities in southern China," Merriman said.
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